After a 2021 Landlord Today study showed that a large proportion of tenants would pay higher rents for sustainable homes, the onus has been on portfolio owners to keep up. The study showed that 53% of those studied were prepared to pay more for a greener property. Of those, just over half would willingly pay 10% more rent, while a further third would accept a 5% increase.
In this blog, we’ll discuss why sustainability is so important, how portfolio owners can improve their sustainability, and the part Opago can play in this undertaking.
Why Is Sustainability Important?
Financial Impact
Sustainable properties are designed to be energy-efficient and resource-conscious. Implementing energy-efficient systems, such as LED lighting, smart thermostats, and water-saving fixtures, can significantly reduce utility bills for both landlords and tenants. By conserving resources, landlords can also minimise maintenance and operational costs in the long run.
Environmental Impact
Sustainable properties aim to minimise their impact on the environment by reducing energy consumption, carbon emissions, and water wastage. Landlords and tenants who prioritise sustainability contribute to the global efforts to mitigate climate change, conserve natural resources, and protect ecosystems.
Tenant Impact
In today's market, tenants are actively looking for environmentally conscious and socially responsible living spaces. Green properties demonstrate a commitment to sustainability, which can attract eco-minded tenants who value responsible living practices. By offering sustainable features and initiatives, landlords can differentiate their properties and potentially increase tenant retention rates.
Impact on Reputation
Landlords who prioritise sustainability can enhance their reputation as responsible property owners and contribute to a positive brand image. Demonstrating a commitment to sustainability can attract socially conscious investors, partners, and stakeholders, while also appealing to potential tenants who align with these values.
Impact on a Property’s Value
Sustainable properties tend to have higher market value due to their energy-efficient features and reduced operating costs. Additionally, as sustainability continues to gain importance globally, properties with sustainable attributes may experience increased demand and appreciation over time.
What Changes Can Be Made?
Renewable Energy
Investing in renewable energy is one of the best ways to make a portfolio sustainable. While the initial outlay may be high, the benefits once installed are peerless. Solar panels save and even generate money over time, while air source heat pumps provide temperate homes using the fresh air outside.
Smart Meters
These meters are a great way to keep an eye on energy usage and make changes where required. All the data is stored within the meters, giving users easy access. Studies suggest that given the ability to monitor their energy use more frequently in greater detail, many consumers may begin turning off unneeded appliances, change to more efficient lighting, adjust thermostats and make other energy-saving changes. If consumers conserve energy, less power may need to be produced.
Double and Triple Glazing
Once a home is efficient, it needs to remain that way. Double and triple glazing can help with this, trapping heat inside and stopping draughts from blowing through. This means that heating needs to be used less frequently, and this saves money in turn. An added benefit of this glazing is also a major reduction in noise levels from outside. Studies show that noise was reduced by an average of 31 decibels when double glazing was employed.
Environmentally Friendly Products
Even when a property has been completed, there’s still more that can be done. When cleaning and maintaining a property, environmentally friendly products can be used. For example, some organisations choose zero VOC (volatile organic compounds) paint, while at Opago, we champion companies such as Home Things, a Belgium-based company that offers household cleaning supplies, laundry liquid, and washing up liquid refills, for our housekeeping tasks. We also partner with Mitchell and Peach, a luxury fragrance and body care provider that uses local products to minimise their carbon footprint, as our toiletry suppliers.
Green Partners
As alluded to above, one of the best and easiest ways to go green is to find sustainable partners that share your vision. At Opago, we did this with Urban Rest. By combining our resources and finding common ground, we’ve been able to deliver first-class services backed by outstanding green credentials.
How Can Opago Help?
Opago is a property operations provider that works to increase your yield, boost your returns, and improve your sustainability. Our on-the-ground teams used technology-backed services to transform your portfolio, and sustainability is at the core of what we offer. Our credentials are shown in the partnerships we already have. Home Things provides eco-friendly refills, Mitchell and Peach are our trusted partners for toiletries, we partner with Carton Water to reduce plastic bottles, and use Cheeky Panda’s recycled-bamboo toilet paper.
If you’re ready to go green, make your operations more efficient, and boost your returns, get in touch with the Opago team today.
